WASHINGTON, D.C. – November 19, 2019 – Berkadia today announced the closing of seven seniors housing deals for a total of $158.9 million in financing secured by their Seniors Housing & Healthcare group across the past three months.
“It has been an active third quarter for our group, with the execution of a range of financings—from a $107.6 million Fannie Mae Master Credit Facility for a large portfolio to a $2.12 million HUD mortgage for a 60-bed skilled nursing and assisted living community,” said Senior Director Ed Williams. “We’re pleased to help our clients address their diverse financing needs to create value and reposition themselves for the next phase of growth.”
The first was a refinance of eight independent living, assisted living and memory care communities in South Carolina, Mississippi and Louisiana. Senior Directors Ed Williams and Rafael Nobo of Berkadia’s Seniors Housing & Healthcare group secured the deal on behalf of a Louisiana based developer, owner, and operator of senior care facilities.
The eight-property portfolio contains a total of 593 units with an average occupancy of 93.09 percent. The communities were refinanced through a $107.6 million Fannie Mae Master Credit Facility with a 10-year, fixed-rate term and an interest only component. The sponsor used loan proceeds to recapitalize the communities, buy out minority investors and consolidate existing debt into one financing.
The second closed deal was a bridge to HUD and HUD financing for an assisted living and memory care facility in northern California. Senior Director Ed Williams lead the transaction. Berkadia’s Proprietary Lending Group initially provided the owner of Paramount House Senior Living, a 95-unit community in Vacaville, CA, with an interest-only bridge loan that carried a floating rate with an initial twelve-month term. Bridge loan proceeds allowed the sponsor to pay off existing debt and consolidate the ownership away from a tenancy in common structure. Berkadia subsequently provided a $13.9 million HUD 232/223f loan.
The third transaction was a Freddie Mac refinance for an independent living facility in the San Francisco Bay area. Senior Directors Rafael Nobo and Chris Cain secured the $21 million 10-year, fixed-rate loan with a full-term of interest only on behalf of the California based borrower to enable them to cash out. The 150-unit community had an existing HAP contract consistently performing with strong occupancy above 95 percent.
The fourth transaction was a Fannie Mae financing for a Tennessee-based owner/operator on a 99 percent occupied assisted living and memory care community located in Georgia. Senior Director Ed Williams secured the $7.01 million 10-year, fixed-rate loan with an interest only component. The loan was early rate locked to allow the sponsor to capitalize on low rates. Loan proceeds were used to pay off the existing debt, fund renovations and return equity to the sponsor in the form of a cash out.
The fifth transaction was a $3.16 million HUD mortgage on a 52-unit assisted living property located in Indiana. Senior Director Ed Williams secured the loan on behalf of a repeat client. The proceeds were used to pay off existing debt as well as reimburse the conversion of unused space to additional units.
The sixth transaction was a $2.12 million HUD mortgage for a 60-bed skilled nursing and assisted living community located in Montana and constructed in phases in 1954, 1959 and 1995. Managing Director Jay Healy secured the loan on behalf of an existing Berkadia client. The proceeds were used to pay off an existing bank loan.
The seventh transaction was a $4.1 million loan utilizing Berkadia’s Proprietary Bridge Lending platform. Senior Director Bianca Andujo and Managing Director Jay Healy secured the financing on behalf of the Texas-based owner/operator. The loan was 94 percent of purchase price and transaction costs and was used to exercise the client’s purchase option on a skilled nursing facility they operate. It will be refinanced through HUD.
Berkadia’s Seniors Housing & Healthcare group leads the industry in innovative and comprehensive solutions for even the most complex independent living, assisted living, memory care and skilled nursing projects across the country. In addition to deep market knowledge, the group offers a full set of advisory, underwriting, loan origination services and products including FHA, Fannie Mae, Freddie Mac, Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services. Last year, the team expanded its capabilities by adding an investment sales presence, rounding out its full suite of services.